TO advance expansion in China, entertainment group Yaohan Whimsy Co plans to set up a series of outlets in Fujian, starting in the provincial capital Fuzhou. 'We hope Whismy will be all over China,' managing director Robert Go said. China is the main target of Whimsy's expansion in the Asia-Pacific region. Mr Go said the company was having ongoing discussions with various parties about the franchise of Whimsy outlets in Guangdong and Shanghai. He said the use of franchise agreements was suitable for the company's development in China because of the country's immense market. 'It will be much easier for the locals to find the human resources and capital sites. It helps the company to expand faster,' he said. The Whimsy outlet in Fuzhou is based on a joint-venture franchise agreement with Luen Thai International Group called Cheer Idyll Holdings, of which Whimsy owns 25 per cent and Luen Thai 75 per cent. Yesterday, Whimsy chairman Kazuo Wada signed an agreement with Luen Thai chairman Tan Siu-lin, sealing the Fujian joint venture and one in Guam. There will be three to five outlets opened in Fujian in future. 'Our first outlet was launched in Shenzhen and our partner has a well-established business in Fujian so it's just an . . . extension of this,' Mr Go said. He is also confident that Chinese consumption potential is high. Capital investment in Fuzhou is about 3.5 million yuan (about HK$3.16 million), with expected annual sales of 10.2 million yuan. A store in Xiamen will be opened by the end of the month, requiring 10 million yuan of investment. Sales are expected to reach 18 million yuan annually. The company which obtained the franchise has to pay a lump sum of US$40,000 to Whimsy and will share four per cent of turnover with Whimsy each year.